The Rupp Report: Italian Textile Machinery Exports Are Growing

Italy, as one of the most important European textile machinery producers, experienced a successful
ITMA 2011. Most members of the Association of Italian Textile Machinery Manufacturers (ACIMIT)
reported satisfactory results. On a recent trip to Italy, the Rupp Report had the chance to visit
ACIMIT President Sandro Salmoiraghi. Of course, issues discussed were ITMA and the results for the
Italian machinery suppliers in the year 2011.

Preliminary 2011 figures for Italy’s textile machinery sector show continued increases in
manufacturing production and exports, following a strong recovery in 2010 after the disastrous year
2009 with the very well-publicized slump in the global textile industry (See ”
Continued
Growth For Italian Textile Machinery Sector In 2011,”
TexileWorld.com, February 7, 2012).



Strong Increase

The value of Italian textile machinery production for 2011 increased by 9 percent in
comparison to 2010 production, netting a total of 2.6 billion euros, up from 2.4 billion euros the
year before. As in every other important textile machinery-producing country, exports remain the
major engine of growth in Italy. As Salmoiraghi mentioned, “The dynamism of the major textile
markets, combined with the ability of Italian machinery manufacturers to assert themselves on a
global scale, has contributed to supporting the exports of the Italian manufacturers.”

The figures are quite impressive:

Italian Textile Machinery Industry (millions of euros)

In spite of the positive results obtained at ITMA 2011, Salmoiraghi commented, many ACIMIT
members have been cautious, and they’ve had mixed emotions regarding the near future and the year
2012, considering the imminent clouds appearing over the financial markets. “And,” Salmoiraghi
said, “the home market throughout the Eurozone remained quite weak. The main reason for that was
the current uncertain economic situation.”

The global demand for textile machinery was slowing down last summer due to the difficult
financial situation. Many negotiations, which started at ITMA in Barcelona, Spain, were not yet
finalized. Even in the latest ACIMIT report giving the provisional figures for 2011, Salmoiraghi
was extremely cautious. “The economic slowdown has also affected and currently affects developing
countries as well, including their textile sectors,” he mentioned. And he further added, “The drop
in consumer spending in developed markets has penalized major apparel exporting countries — above
all China.”



Asian Markets Most Important

Some 80 percent of Italian textile machinery product is exported. In 2011, 25 percent of all
exports were shipped to China, and a total of 50 percent of all exports were delivered to Asian
markets. Data from the Italian National Institute of Statistics (ISTAT) for the period of January
through October 2011 show considerable growth for Italian exports in all markets, as follows:

Italian Export Growth:  January through October 2011

Source: ISTAT/ACIMIT



Positive Signs Ahead For 2012

And how is the feeling in Italy now for 2012? “Well,” Salmoiraghi said, “there is a much
better mood among our member companies. Everybody is confident that the markets will soon recover.
China, India, and, above all, Turkey are showing very positive growth rates. There are still some
problems in Brazil due to the restricted import and export rules, but we are confident that this
will be settled very soon. Also, our home market, Italy, shows some recovery. On top of that, we
have a clear sign that the markets in many sectors will be recovering in the next few months: the
microelectronics industry is back working at full tilt. Chips and other products from this sector
are built into virtually every modern product, and therefore, also into textile machinery. And
that’s very good news for your readers, isn’t it?”

Yes, it is, Mr. Salmoiraghi.

February 14, 2012